So You’re hear to find out more about how (or why) I go about purchasing seemingly dead-end stocks.
That’s fair enough so seeing as you’re here I’ll reveal all my dirty little secrets right here right now.
Just don’t tell anyone about it.
1. The Shares and Stock Markets Value Investing Strategy
This is the central philosophy that keeps everything together here at Shares and Stock Markets HQ.
In a nutshell the value investing approach I take is a an old school one straight from the pages of The Intelligent Investor by Benjamin Graham.
If you go to page 163 of the revised edition with commentary by Jason Zweig there you will find what Graham decided to call The Relatively Unpopular Large Company.
I’ve written about this strategy on many occasions.
I’ve also posted different examples of how I’ve found out about the opportunities that exists in financial markets to make money from stocks using this very strategy:
- Long GlaxoSmithKline Plc at 1487p – A Relatively Unpopular Large Company
- 40% Drop In Share Price Makes Volkswagen A Relatively Unpopular Large Company
It is also the strategy I use to grow my retirement savings by committing to purchasing stocks every single month but only in stocks that meet the guiding principles of value investing or if there are no bargains to be had then I’ll buy government bonds.
The strategy revolves around buying mid to large cap stocks below a PE ratio of 20 making sure that the stock price has declined and that any unpopularity the company is going through is only temporary as far as research determines.
2. The Shares and Stock Markets Model Portfolio
The model portfolio which can be found on this page is simply a list of all the stocks and bonds I’ve bought and sold for my retirement account.
A lot of the time I simply buy and hold because of the way I invest: over the very long term.
Since I have a lot of years left until the official age of retirement I can afford to hold stocks in the mid to large cap space whilst they pay dividends and present opportunities to either sell off a bit of stock/top slice or add to existing holdings.
As such there is no benchmark against which to measure returns and neither is there an accumulative %gain/loss chart.
Instead gains and losses are listed on an individual basis (see below).
Gains are being made both by my personal contributions to the retirement plan/SIPP, the UK government’s contributions to the plan (via a tax rebate – more on this on this post) and by the rise in market value of the securities held within it.
Each stock has an ultimate P&L measured in % terms whenever they are sold just to keep score.
Here’s a quick glance at the current portfolio:
The Shares and Stock Markets Portolio
|Provident Financial||LSE: PFG||585||Aug 2017|
|Kingfisher||LSE: KGF||299||Aug 2017|
|Acacia Mining||LSE: ACA||177||Jul 2016|
|Carillion||LSE: CLLN||67||Jul 2017|
|Next||LSE: NXT||4248||Mar 2017|
|IG Group||LSE: IGG||535||Jan 2017|
|Glaxosmithkline||LSE: GSK||1487||Apr 2016|
|St Ives||LSE: SIV||125||Apr 2016|
|Cerillion Technologies||LSE: CER||116.5||Apr 2016|
|Vanguard U.K. Lg Dur Gilt Ind Fund||B4M8924||18082||Jan 2017|
|Punch Taverns||LSE: PUB||106||Apr 2016||178||Jul 2017||68%|
3. The Best Way To Invest For Retirement
The best way to invest for retirement is the way I’m investing for retirement: over the very long-term, buying undervalued mid to large caps using a broker with extremely low commissions and charges.
In this post I explain how I’m growing my retirement pot from low cost value investing from a relentless monthly buying cycle that forces capital into securities that will more than likely beat the market over the long term.
So consistency – long term consistency – coupled with only buying undervalued securities whilst keeping costs as low as possible is what you need to be aiming for.
It’s no use buying stocks every month if each purchase if potential future gains are eaten away by commissions and administration fees.
My SIPP provider also has a vast range of low cost funds to invest into including index funds, commodity funds, forex, corporate and government bonds and ETF’s.
This is pretty neat because it gives private investors the ability to hold gold, currencies, energies and more by proxy often with dividends thrown in for good measure.
If you’d like to find out more about the strategy behind the portfolio then download the free value investing ebook and newsletter below in which I share more resources not found on the website including the complete Shares and Stock Markets value investing strategy in full.